The Most Important of the Factors That Make a Firm

question 180

Multiple Choice

The most important of the factors that make a firm successful and that can be controlled by the firm's owners and managers are

• A)the establishment of trademarks for its products and the aggressive defense of those trademarks.
• B)lobbying government to erect or enforce entry barriers in its markets and the marketing of its products as widely as possible.
• C)the differentiation of its products and the production of products at a lower average cost than competing firms.
• D)the selection of the prices of its products and the selection of the most productive and loyal employees.

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Definitions:

Notes Receivable

A financial asset representing a promise to pay a specific amount of money, plus interest, to the holder of the note at a future date.

NSF Check

Non-Sufficient Funds Check; a check that cannot be processed because the account on which it is drawn does not have enough funds.

Bank Service Charges

Fees charged by banks for various services such as account maintenance, transactions, and overdrafts.

Other Income

Comprises earnings from sources other than the main business activities, such as interest, dividends, or rental income.